Standard Chartered Launches Sovereign Blue Bond for Seychelles

• Standard Chartered Launches Sovereign Blue Bond for Seychelles

Standard Chartered Plc says it launched the first sovereign blue bond for the Republic of Seychelles in partnership with the World Bank.

It said in a statement that the bond raised $15m from international investors, which would help expand and protect marine areas, improve governance of priority fisheries and develop the Seychelles’ blue economy.

“The World Bank assisted in developing the blue bond and reaching out to the three investors: Calvert Impact Capital, Nuveen, and Prudential. Standard Chartered acted as placement agent for the bond,” it said.

Speaking about the placement, the Chief Executive, Corporate, Commercial and Institutional Banking at Standard Chartered, Simon Cooper, said, “The world’s first sovereign blue bond is a landmark transaction and one in which Standard Chartered is proud to have played a role, in partnership with the World Bank and the Republic of Seychelles. Finding innovative ways to mobilise capital to tackle development issues is a priority for us.”

The Global Head, Sustainable Finance, Public Sector and Development Organisations, Standard Chartered, Daniel Hanna, said, “The Seychelles blue bond will help protect the health of our oceans while developing a blue economy and serve as a powerful example for other countries, highlighting that finance can play a role as an important force for good.”

According to the statement, the Seychelles blue bond is partially guaranteed by a $5m guarantee from the World Bank and further supported by a $5m concessional loan from the Global Environment Facility, which will partially cover interest payments for the bond.

It said proceeds from the bond would also contribute to the World Bank’s South West Indian Ocean Fisheries Governance and Shared Growth Programme, aimed at supporting countries in the region to sustainably manage their fisheries resources and increase economic benefits from their fisheries sectors.